ECB could push forward Greek bank stress tests
(25 September 2017 – Greece) The European Central Bank (ECB) may look to bring forward the testing of Greek banks next year, finalising data before Greece is due to the €86 billion bailout.
Reuters reports that the stress test could be finalised in early May, three months before the end of the bailout in August. The early results would provide lenders sufficient time to source additional capital should any capital shortfalls be uncovered.
ECB President Mario Draghi, speaking to members of the European Parliament, said the central bank was willing to exercise some flexibility with its timeline.
“The SSM (Single Supervisory Mechanism) will take its decision with full independence,” he said.
“What the SSM plans to do next year is to have a stress test, possibly frontloading the stress test, and basically the SSM sent a letter to the IMF concerning exactly this expected line of action,” Draghi added.
Greek banks have been recapitalised three times since the height of the 2010 debt crisis, but are still burdened by more than €100 billion of bad loans.
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